Amr-cal
 

Reuters
AMR, Continental in exploratory merger talks: report
Friday February 15, 6:16 pm ET


WASHINGTON (Reuters) - American Airlines (NYSE:AMR - News) and Continental Airlines Inc (NYSE:CAL - News) have had exploratory talks about a merger, the Wall Street Journal reported on Friday.

Citing people familiar with the situation, the report said it was not clear if the discussions would go any further. Continental has been in intensifying discussions with United Airlines (NasdaqGS:UAUA - News) about a possible tie up.

It is unclear if the latest development with American, reflects on prospects for UAL Corp's United and Continental.

Industry experts have also suggested American might want to pursue a smaller low-cost airline rather than a network rival.

The flurry of merger speculation comes as Northwest Airlines Corp (NYSE:NWA - News) and Delta Air Lines Inc (NYSE:DAL - News) near a possible merger proposal. Industry sources have said a deal could be announced as early as next week.

Continental has declined to comment on potential mergers. American officials could not be reached immediately for comment.

The shares of big U.S. airlines closed higher on Friday. American parent AMR Corp was up 44 cents, or 2.9 percent, to $15.25, while Continental finished up 99 cents, or 3.4 percent, at $29.69.


Hang On ! It's going to get bumby!